As we gear up for the upcoming Thanksgiving holiday, let’s take a closer look at the latest market updates in today’s CNBC Daily Open, your go-to source for global market news. Whether you’re an investor or just curious about the financial world, we’ve got you covered. Intrigued? Stay informed by subscribing here.
Inflation on the rise
The personal consumption expenditures price index for October saw a 0.2% month-on-month increase and a 2.3% rise over the past year, according to the U.S. Commerce Department’s recent report. Core inflation also showed an uptick, with a 0.3% monthly rise and an annual rate of 2.8%. These figures surpassed the Dow Jones consensus estimates and shed light on the current economic landscape.
U.S. markets face a setback
After a seven-day winning streak, U.S. stock markets took a hit on Wednesday, with the S&P 500 breaking its positive run. Bond prices rose and Treasury yields dipped, while the pan-European Stoxx 600 experienced a 0.19% decline. Just Eat Takeaway shares plunged by 2.7% following the company’s decision to delist from the London Stock Exchange.
Bitcoin rebounds
Bitcoin made a strong comeback, surging by 5.4% to $96,169.36 on Thursday morning after hitting a low of around $90,700 earlier in the week. Interestingly, bitcoin’s movement diverged from the U.S. indexes, which saw a decline on Wednesday. Analysts remain optimistic about the cryptocurrency’s future performance, with Alex Thorn from Galaxy Digital expressing confidence in the ongoing bitcoin bull market.
Tariffs looming over Europe’s auto industry
Concerns are growing in the euro zone regarding potential tariffs on the region’s auto industry by U.S. President-elect Donald Trump. Rico Luman from Dutch bank ING highlighted the interconnectedness of the auto industry with other sectors like steel and chemicals, emphasizing the broader implications of such tariffs.
Magnificent financial stocks steal the spotlight
While the focus remains on the “Magnificent Seven” stocks, financial stocks have emerged as the top performers in 2024. Within the financial sector, certain segments are poised for exceptional growth and profitability, signaling a positive trend for investors.
As we brace ourselves for a festive feast of turkey, stuffing, and pumpkin pie, investors in the U.S. have adopted a cautious approach, with lighter trading activity observed. Despite the S&P’s 0.38% decline and the Dow Jones Industrial Average’s 0.31% dip, the overall market sentiment remains stable, reflecting a strategic profit-taking strategy by traders.
The slight increase in inflation rates did not cause significant concern among investors, as most were prepared for this anticipated uptick. In fact, market expectations suggest a potential rate cut by the U.S. Federal Reserve in its upcoming December meeting, with a 64.7% probability of a 25 basis points reduction.
As we enter the holiday season, the market outlook remains positive, with indicators pointing towards a steady upward trend and a resilient market landscape. This Thanksgiving, let’s celebrate the progress and accomplishments of the financial world, offering gratitude for the opportunities and potential that lie ahead.
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